NEW DELHI: Following global trends, gold prices in India moved higher on Tuesday. In the global markets, investors are looking ahead to US non-farm payrolls data.
The yellow metal traded off its three-week high paring some previous gains. Traders and investors will now try to gauge Fed mood from upcoming US data after the Jackson Hole meet.
Ravindra Rao, CMT, EPAT, VP- Head Commodity Research at Kotak Securities, said gold has come off highs but remains supported by disappointing economic data, rising virus concerns, China’s regulatory crackdown measures and geopolitical tensions relating to Afghanistan.
“However, weighing on price is relative stability in equity markets and continuing ETF outflows. Gold may waver as market players may remain non-committal ahead of US jobs reports. However, increasing challenges to the global economy may keep price supported,” he added.
Physical gold demand in India was subdued last week as jewellers held off purchases, hoping for a dip in prices, but top consumer China saw a slight uptick in activity.
In the spot market, highest purity gold was sold at Rs 47,478 per 10 gram while silver was priced at Rs 63,804 per kg on Monday, according to the Indian Bullion and Jewellers Association.
The spot price of the yellow metal has increased about Rs 500 in the last couple of weeks, whereas silver has gained over Rs 900 during the period under review.
“We expect gold prices to trade sideways to up for the day with COMEX Spot gold support at $1,795 and resistance at $1,833 per ounce. MCX Gold October support lies at Rs 46,900 and resistance at Rs 47,500 per 10 gram,” said Tapan Patel, Senior Analyst (Commodities), HDFC Securities.
Spot gold rose 0.1% to $1,812.27 per ounce by 0116 GMT. US gold futures were up 0.2% at $1,816.00.
Silver fell 0.1% to $24.03 per ounce, while platinum eased 0.3% to $1,003.89. Palladium dropped 0.7% to $2,476.22, having risen 3.1% in the previous session.